- EUR/USD picks up bids to refresh intraday high during three-day uptrend.
- Successful break of 50-SMA, bullish MACD signals keep buyers hopeful.
- Upside clearance of 1.0200 becomes necessary to confirm the bullish chart pattern.
- 50-DMA, weekly support line restricts immediate downside moves.
EUR/USD refreshes intraday high around 1.0150 as bulls portray the three-day uptrend amid the initial European session on Tuesday.
The major currency pair rose to the highest levels in a month the previous day before reversing from the resistance line of a nearly two-month-long falling wedge bullish chart pattern. The pullback moves, however, remained above the 50-DMA and kept the buyers hopeful.
Also favoring the upside momentum are the bullish MACD signals and the firmer RSI (14), not overbought.
It should, however, be noted that the clear upside break of the 1.0200 threshold becomes important for the EUR/USD bulls as it will confirm the theoretical transition towards the 1.0950 hurdle.
During the run-up, the tops marked during August and June, respectively near 1.0370 and 1.0615, could test the upside momentum, in addition to the 100-DMA hurdle surrounding 1.0335.
Meanwhile, pullback moves may initially aim for the 50-DMA support near 1.0115, a break of which could direct EUR/USD bears towards a one-week-old support line, close to 1.0085 by the press time.
Following that, the yearly low near 0.9865 and the lower line of the stated wedge, close to 0.9860, should gain the market’s attention.
EUR/USD: Daily chart
Trend: Further upside expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD rises to two-day high ahead of Aussie CPI
The Aussie Dollar recorded back-to-back positive days against the US Dollar and climbed more than 0.59% on Tuesday, as the US April S&P PMIs were weaker than expected. That spurred speculations that the Federal Reserve could put rate cuts back on the table. The AUD/USD trades at 0.6488 as Wednesday’s Asian session begins.
EUR/USD now refocuses on the 200-day SMA
EUR/USD extended its positive momentum and rose above the 1.0700 yardstick, driven by the intense PMI-led retracement in the US Dollar as well as a prevailing risk-friendly environment in the FX universe.
Gold price cautious despite weaker US Dollar and falling US yields
Gold retreats modestly after failing to sustain gains despite fall in US Treasury yields, weaker US Dollar. XAU/USD struggles to capitalize following release of weaker-than-expected S&P Global PMIs, fueling speculation about potential Fed rate cuts.
Ethereum ETF issuers not giving up fight, expert says as Grayscale files S3 prospectus
Ethereum exchange-traded funds theme gained steam after the landmark approval of multiple BTC ETFs in January. However, the campaign for approval of this investment alternative continues, with evidence of ongoing back and forth between prospective issuers and the US SEC.
Australia CPI Preview: Inflation set to remain above target as hopes of early interest-rate cuts fade
An Australian inflation update takes the spotlight this week ahead of critical United States macroeconomic data. The Australian Bureau of Statistics will release two different inflation gauges on Wednesday.